MNI DATA IMPACT: Brexit-Related Auto Plunge Sinks April GDP>

By Les Commons and Laurie Laird 

LONDON (MNI) - GDP growth fell at its fastest monthly pace since March 

2016, dampened by Brexit-related shutdowns of car factories. 

The following are the key points from UK GDP data published Monday by 

the Office for National Statistics.

     - GDP slumped by 0.4% in April, the biggest fall since March of 

2016, a much greater decline than forecast by analysts. However, 

economic strength in the month of February lifted 3m/3m growth to 0.3% 

in April, despite a slight decline in GDP in March. 

     - Manufacturing weakness accounted for nearly all of the slump in 

monthly GDP, dragged lower by a 29% plunge in motor vehicle production. 

Many car maufacturers had announced factory shutdowns to coincide with 

the original Brexit date of 28 March.  

     - Overshadowed by the slump in manufacturing is persistent 

weakness in the dominant service sector, which registered no growth in 

April after a 0.1% decline in March. Services have exerted a mild drag 

in GDP in each of the past two months. 

     - Financial services have not recorded growth over the past 16 

straight months, the longest stretch of weakness on record. The sector 

has suffered a 2.5% decline since peaking in December of 2017.

     - The trade deficit narrowed sharply, courtesy of a sharp decline 

in both imports and exports.  Import values plunged by 12.7%, the 

largest fall since records began in 1998. Export valued fell by 8.4%, 

the biggest decline June of 2012.

     - The first quarter trade gap was revised higher by Stg900m to 

Stg19.3 billion. However, an ONS official refused to comment on whether 

the larger-than-orginally-reported deficit could affect later 

iterations of GDP.  Net trade subtracted 2.16 percentage points from 

GDP in the first quarter. 

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,MABDS$]